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SAI INTERNATIONAL SCHOOL
                                                  SESSION 2020-21
                                                       CLASS-IX

                            ECONOMICS- CHAPTER-3 POVERTY AS A CHALLENGE

                                                   LESSON NOTES
                                                     SUB TOPIC-3
                                         Poverty Line and Poverty Estimates


                     The poverty line is a method to measure poverty based on income or
                       consumption levels. Poverty line varies according to time and place.
                     In India, the poverty line is determined through a minimum level of food
                       requirement, clothing, footwear, fuel and light, educational and medical
                       requirement, etc..
                     These physical quantities are multiplied by their prices in rupees.
                     In India poverty is calculated on the basis of the desired calorie requirement.
                     The accepted average calorie requirement in India is 2400 calories per person
                       per day in rural areas and 2100 calories per person per day in urban areas.
                     On the basis of these calculations, for the year 2011–12, the poverty line for a
                       person was fixed at Rs 816 per month for rural areas and Rs 1000 for urban
                       areas.
                     The Poverty Line is estimated periodically (normally every five years) by
                       conducting sample surveys carried out by the National Sample Survey
                       Organisation (NSSO).
















               Poverty Estimates


               In India, there is a substantial decline in poverty ratios from about 45 per cent in
               1993-94 to 37.2 per cent in 2004–05. The proportion of people below the poverty line
               further came down to about 22 per cent in 2011–12.
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